Mexican petroleum services leader, Cotemar, was forced to ax over 2300 of its employees in 2016. These layoffs hit the state of Campeche, where the company is headquarted, quite hard. Most of the state’s employees work in the petroleum sector and many breadwinners lost their sole source of income during the Mexican state’s oil downturn. However, the future is looking brighter than ever.
With the reforms to the industry that were passed in 2013 by President Nieto, Mexico, for the first time, will open its gigantic oil market to outside firms and capital. This is anticipated to lead to a flood of investment into Mexico’s ailing oil fields and major development of new sources of crude.
As Pemex falters, new reserves promise to put Mexico back on top of global crude trade
Since 2004, Mexico’s national oil output has been in an apparent state of terminal decline. This comes on the heels of its shallow water wells being slowly depleted over 30 years and the remaining crude and natural gas becoming critically contaminated by the nitrogen used to maintain positive well pressure. In lay terms, Mexico’s current wells are nearly tapped out.
But Mexico has plenty more oil in roughly the same place where its old oil came from, just a little deeper and harder to get to. It’s estimated by state geologists that Mexico has a total of over 90 billion barrels of so-called hard oil. This is buried deep in shale deposits and offshore in deep water wells. Unfortunately, Mexico never developed the huge research and development budgets nor the infrastructure to properly avail itself of these stupendous reserves.
With the Mexican oil industry now open to foreign firms with the expertise, capital and equipment to extract this oil, Mexico is primed to start gushing to the top ranks of the world’s oil producers once again.
As a long standing contractor to Pemex with deep expertise of Mexico, both geologically and politically, Cotemar is uniquely positioned to reap the bounties this new influx of capital will surely bring. With new wells coming online each week, 2017 may be the best year to date, both for Cotemar and for Mexico as a whole.